As the global business world becomes more interconnected, these types of situations are becoming more and more common.
There is a distinction between between transactions and translation that can be fairly simple to draw. Translation mostly deals with a reporting entity that does business in a different currency than they report in. Ex. a Chinese company that has a subsidiary that operates in the US with US dollars. The Chinese company reports in Yuan, and must translate all of this into Yuan.
On the other hand, Transactions occur when a company buys something from another company in another country/currency. Ex. an Australian company that operates in Australian Dollars, buying car parts from a German company in Euros.
For more in depth information on this and other FASB ASC topics, check out the following books.
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